- Solana (SOL) dropped 3% to $234.57 as Cboe refiled for Solana ETFs, with technical indicators showing a possible breakout if it clears $250 or a drop toward $200 if support fails.
- Meanwhile, investors are eyeing Solaxy (SOLX), a new Solana meme coin raising $15.9 million in presale, promising 100X potential and high staking rewards.
The price of Solana (SOL) has declined by 3% over the past 24 hours, currently trading at $234.57 as of 02:32 a.m. EST. This dip comes amid a 44% drop in trading volume, which now sits at $5 billion.
The recent downturn follows the Cboe BZX exchange’s refiling of 19b-4 applications for spot Solana ETFs from Bitwise, VanEck, 21Shares, and Canary Capital. The move comes after the U.S. Securities and Exchange Commission (SEC) reportedly rejected initial applications last year.
Solana Price Analysis: Is a Correction Underway?
Technical indicators suggest that Solana is currently undergoing a price correction after reaching a high of $293.31 in mid-January.
The 4-hour chart reveals a falling wedge pattern, with lower highs and lower lows forming. This setup indicates that support around $234.57 is holding, but SOL is struggling against the upper resistance trendline.
Meanwhile, Solana previously flashed a golden cross, with the 50-period Simple Moving Average (SMA) crossing above the 200-period SMA at $199.23. While typically a bullish signal, SOL’s inability to break higher suggests that bulls lack momentum.
The Relative Strength Index (RSI) sits at 45.10, indicating neutral to slightly bearish momentum. This leaves the door open for a potential breakout in either direction.
Can SOL Recover?
For a bullish reversal, Solana must break above the descending trendline ($245–$250) with strong volume. If successful, the next resistance levels are $280–$300, with a potential rally toward $320 and beyond.
On the downside, $220 remains a critical support level. A breakdown below this could push SOL toward the 200-period SMA at $215, and a further decline could see prices drop to $190–$200.
Solaxy (SOLX): A New Solana Meme Coin Gains Traction
As SOL navigates its price movements, investors are turning their attention to Solaxy (SOLX), a new Solana meme coin. The project has already raised over $15.9 million in its presale and is being hailed by 99Bitcoins as a potential 100X token post-launch.
Solaxy aims to reduce Solana’s network congestion by implementing layer-2 scaling solutions, similar to Ethereum’s Arbitrum and Optimism. By processing transactions off-chain and batching them before submitting them to the Solana mainnet, Solaxy could enhance efficiency and improve network performance.
Currently, SOLX tokens are available at $0.001618 during the presale, with investors able to purchase them using BNB, ETH, USDT, or bank cards. Additionally, staking SOLX offers an annual yield of 249%, with over 4.6 billion tokens already staked.
While Solana’s price struggles amid ETF developments, the long-term outlook remains tied to regulatory approvals and market sentiment. Investors are also shifting focus toward emerging Solana-based projects like Solaxy, which could introduce new opportunities within the ecosystem.
Will Solana reclaim its previous highs, or is further correction ahead? The next few weeks will be crucial in determining SOL’s trajectory.
